NERDS ON SITE INC. REPORTS Q3 FY2026 RESULTS: RETURN TO PROFITABILITY AND CONTINUED REVENUE MOMENTUM

Rhea-AI Summary

Nerds On Site (OTC: NOSUF) reported Q3 FY2026 results for the quarter ended February 28, 2026, showing revenue of $3,284,428 (up 9% YoY) and net income of $51,877, marking a return to quarterly profitability. Nine‑month revenue was $10,077,870 (up 18% YoY) with a reduced nine‑month net loss of $280,840.

Gross margin improved to 26% in the quarter, SG&A declined to 23% of revenue for Q3, and operating cash usage improved to $104,135 for the nine months versus $693,709 prior year.

Positive

• Revenue +9% in Q3 to $3.28M
• Nine‑month revenue +18% to $10.08M
• Return to quarterly net income of $51,877
• Gross margin expanded to 26% in Q3
• Operating cash usage improved to $104,135

Negative

• Nine‑month net loss remains $280,840
• Quarterly net income amount is modest at $51,877

News Market Reaction – NOSUF

-28.52%

-28.52% Session close to close

In the Apr 29 session, NOSUF declined 28.52%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -28.5% in the session following this news. A negative reaction despite improving f...

Analysis

The stock dropped -28.5% in the session following this news. A negative reaction despite improving fundamentals would have contrasted with NOSUF’s Q3 return to profitability and revenue growth to $3.28M. The company reported higher gross margin of 26% and sharply lower operating cash usage of $104,135, yet the shares remained below the 0.04 200-day MA and far under the 0.07 52-week high. Such a decline would have raised questions about how much past losses and overall trend still weighed on sentiment.

Key Figures

Q3 FY2026 revenue: $3,284,428 Q3 gross profit: $861,370 Q3 SG&A ratio: 23% of revenue +5 more

8 metrics

Q3 FY2026 revenue $3,284,428 Three months ended February 28, 2026; up 9% from $3,004,549

Q3 gross profit $861,370 Three months ended February 28, 2026; gross margin 26% vs 23%

Q3 SG&A ratio 23% of revenue Down from 30% in prior-year period; 16% SG&A expense decline

Q3 net income $51,877 Return to profitability vs net loss of $198,156 last year

Q3 EPS $0.0006 Improved from loss of $0.0022 per share

9M FY2026 revenue $10,077,870 Nine months ended February 28, 2026; up 18% year-over-year

9M net loss $280,840 Nine months ended February 28, 2026; reduced from $559,211

9M operating cash usage $104,135 Nine months ended February 28, 2026; improved from $693,709

Key Terms

cybersecurity, recurring revenue, gross margin, operating cash, +1 more

5 terms

cybersecurity technical

"a leading managed IT and cybersecurity services provider serving"

Cybersecurity involves protecting computers, networks, and digital information from theft, damage, or unauthorized access. It is essential for safeguarding sensitive data and maintaining trust in digital systems, which matters to investors because strong cybersecurity reduces the risk of costly breaches and disruptions that can impact a company’s performance and reputation. Think of it as locking and safeguarding valuable information much like securing a safe to prevent theft.

recurring revenue financial

"strengthening recurring revenue base, and ongoing demand for"

Revenue that a company expects to receive on a regular, predictable basis from ongoing sources such as subscriptions, service contracts, or repeat customer purchases. It matters to investors because it provides steadier cash flow and makes future earnings easier to forecast—like a landlord collecting monthly rent instead of one-off sales—supporting higher valuations and lower risk when those payments are reliable and customers tend to stay.

gross margin financial

"Gross profit rose to $861,370, with gross margin improving to 26%"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

View in glossary

operating cash financial

"Operating cash usage improved dramatically to $104,135, versus $693,709"

Operating cash is the actual cash a company generates from its core business activities—money received from customers minus cash paid for things like suppliers, wages and rent—similar to the cash in a shop’s till after covering daily costs. It matters to investors because it shows whether the business can fund operations, pay debts and invest in growth without relying on borrowing or one-time accounting tricks, revealing the real, sustainable health of the company.

hybrid and remote work technical

"The shift to hybrid and remote work environments continues to accelerate"

Hybrid and remote work describes arrangements where employees split time between working offsite (from home or elsewhere) and onsite offices, or work entirely away from a central workplace. For investors, these models affect a company’s costs, productivity, real estate needs and ability to attract talent — like a store choosing between a smaller showroom and online sales, the choice can change profit margins, cash needs and future growth prospects.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NERD RETURNS TO PROFITABILITY AND CONTINUED REVENUE MOMENTUM

Nerds On Site Inc. (CSE: NERD) (OTC: NOSUF)

TORONTO, April 29, 2026 /PRNewswire/ - Nerds On Site Inc. ("NOS" or the "Company") (CSE: NERD), a leading managed IT and cybersecurity services provider serving small and medium-sized enterprises across Canada and the United States, today announced its financial results for the three and nine months ended February 28, 2026.

The Company delivered continued revenue growth, improved margins, and a return to quarterly profitability, reflecting disciplined execution, a strengthening recurring revenue base, and ongoing demand for cybersecurity and managed IT services.

Q3 FY2026 Financial Highlights

For the three months ended February 28, 2026:

• Revenue increased to $3,284,428, up 9% from $3,004,549 in the prior year period
• Gross profit rose to $861,370, with gross margin improving to 26% (from 23%)
• SG&A expenses declined 16%, improving to 23% of revenue (from 30%)
• Net income reached $51,877, compared to a net loss of $198,156 last year
• Earnings per share improved to $0.0006, compared to a loss of $0.0022

For the nine months ended February 28, 2026:

• Revenue increased to $10,077,870, up 18% year-over-year
• Gross profit rose to $2,526,147, with stable margins of 25%
• SG&A expenses decreased 7%, improving to 25% of revenue (from 32%)
• Net loss reduced significantly to $280,840, compared to $559,211 in the prior year
• Operating cash usage improved dramatically to $104,135, versus $693,709 in the prior period

These results highlight meaningful operational progress and improved financial discipline across the organization.

Return to Profitability Marks Key Inflection Point

The Company's return to quarterly net profitability represents a critical milestone in its evolution.

This improvement was driven by:

• Growth in recurring revenue from business clients in Canada
• Enhanced cost management and operational efficiency
• A more favorable product mix and improved sourcing strategies
• Continued leverage from the Company's scalable service model

Management views this quarter as an important step toward sustained profitability.

Recurring Revenue Model Driving Stability and Growth

Nerds On Site continues to benefit from its high-visibility recurring revenue model, which is foundational to its business strategy.

During the nine-month period:

• Business recurring revenue in Canada increased by 17%
• The Company served over 10,000 customers annually, with 130,000+ clients served since inception
• Recurring service agreements continue to provide predictable cash flow and long-term client relationships

This model positions the Company to generate consistent revenue while scaling efficiently across markets.

Operational Efficiency and Margin Expansion

The Company achieved significant improvements in cost structure, with SG&A reductions driven by:

• Lower payroll and operational costs within NOS Technical Services
• Timing efficiencies in business development spending
• Continued optimization of internal systems and processes

Gross margin expansion to 26% in the quarter reflects:

• Improved pricing from suppliers
• Strategic sourcing initiatives
• Increased contribution from higher-margin service revenues

These improvements demonstrate the Company's ability to scale profitably while maintaining service quality.

CEO Charlie Regan commented:
"Our return to profitability this quarter is a defining moment for Nerds On Site. We've spent decades humanizing technology, and today we're scaling that vision across Canada and deeper into USA. This quarter's profitability is not the destination— Nerds On Site is transitioning from a growth story into a performance story. Our platform, our people, and our model are designed for a world where trust, speed, and security are everything. We believe we are still in the early innings of a very large market opportunity to deliver long-term value to our Clients and shareholders."

Market Position and Industry Tailwinds

Management believes the Company is well positioned within a rapidly evolving IT landscape:

• Increasing cybersecurity threats are driving demand for managed services
• The shift to hybrid and remote work environments continues to accelerate IT complexity
• SMEs are increasingly outsourcing IT to trusted managed service providers

Nerds On Site's combination of:

• A distributed "eNerd" contractor network
• More than 100,950 Verified 5-Star Client reviews 
• A strong recurring revenue base provides a scalable and differentiated operating model.

Outlook

Looking ahead, Nerds On Site is focused on:

• Driving sustained profitability through operational leverage
• Expanding recurring revenue streams
• Growing its presence in the United States market
• Strengthening its position in cybersecurity and managed services

Management believes that the Company's improving financial performance, combined with strong industry demand, positions it well for continued growth and value creation.

About Nerds On Site Inc.
Nerds On Site Inc. is a managed IT and cybersecurity service provider delivering technology solutions to small and medium-sized enterprises across Canada and the United States. The Company operates a network of highly skilled IT professionals ("eNerds") supported by its proprietary ERP platform, enabling scalable, efficient, and customer-focused service delivery.

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements.

Charles Regan
NERDS ON SITE INC
+1 519-639-4382
Email us here

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SOURCE Nerds On Site Inc.

FAQ

What were Nerds On Site (NOSUF) Q3 FY2026 revenue and net income?

Q3 FY2026 revenue was $3,284,428 and net income was $51,877. According to the company, revenue rose 9% year‑over‑year and the quarter marked a return to profitability driven by recurring revenue growth and cost reductions.

How did Nerds On Site (NOSUF) perform over the nine months ended February 28, 2026?

Nine‑month revenue was $10,077,870, up 18% year‑over‑year, with a net loss of $280,840. According to the company, gross profit totaled $2,526,147 and operating cash usage improved substantially versus the prior period.

What drove Nerds On Site's (NOSUF) return to quarterly profitability in Q3 2026?

The company cites recurring revenue growth, cost management, and a more favorable product mix as drivers. According to the company, improved sourcing and scalable services also contributed to margin expansion to 26%.

How did Nerds On Site (NOSUF) change its cost structure in Q3 FY2026?

SG&A declined to 23% of revenue in Q3, a 16% reduction year‑over‑year. According to the company, lower payroll and timing efficiencies in business development reduced operating expenses and improved margins.

What is Nerds On Site's (NOSUF) outlook after Q3 FY2026 results?

Management is focused on sustaining profitability, expanding recurring revenue, and growing US presence. According to the company, priorities include operational leverage, cybersecurity services expansion, and deeper US market penetration.